Netflix‘s roundhouse $82.7 billion acquisition of Warner Bros. Discovery’s studio, HBO and streaming assets has proved a corkscrew punch for Hollywood this morning, but the CEOs in the ring are respectively telling their staff to chill, for now.
Both WBD’s David Zaslav and streamer co-CEO Greg Peters individually sent out missives to employees worldwide early Friday as the stock market, Oscar winners and the White House woke up to the news that could fundamentally reshape the media industry
A shift that Zas himself acknowledged with his usual lack of understatement.
“This decision reflects the realities of an industry undergoing generational change – in how stories are financed, produced, distributed, and discovered – and recognizes the strong, transformed company we are today, the significant value we have created, and the resilience and attractiveness that now position us in a rapidly evolving marketplace,” the WBD CEO said of the Netflix agreement to the company’s over 30,000 staffer globally.”
“Over the past several months, the Board evaluated a full set of strategic path,” Zaslav added in what had become an increasingly personal affair with Paramount’s David Ellison wanting another studio fast and furiously as Netflix and Comcast put in bid too. “Their conclusion is that this structure – Warner Bros. joining Netflix, and Discovery Global becoming a focused standalone company – provides the strongest long-term foundation for both sets of businesses.” Read Zaslav’s full memo below.
Sitting in leadership meetings right now, Zaslav will be front and center at a WBD virtual town hall set for 10:30 am PT today.
That town hall hopes to quell the anxiety that is already spreading among WBD halls and cubicles. Layoffs to come, an uneasy meld of the WB and Netflix corporate cultures, and worries of the bumpy regulatory road to a final sale weigh heavy up and down the WB hierarchy, staffers tell me. “It feels like it never ends around here,” one longtime WB management employee said of the seemingly endless round of purchases of the company and cuts that follow.
What role Zas will retain in a combo WB and Netflix remains to be seen, but numerous sources confirm the once high flying lawyers isn’t leaving the Burbank lot anytime soon.
Zas’s position and the moves to seal the Netflix deal will certainly play a significant role in the almost certain Ellison and Paramount lawsuit that is coming as frayed tempers at the Melrose lot and perhaps in the Oval Office show no signs of calming.
Having rope-a-doped almost everyone on WBD over the past few months, the universally circumspect Peters basically told Netflix staffers to stay calm and carry on, to quote the now famed WWI-era British Ministry of Information phrase. In his email, the man who swore in October that the streamer’s core was to be “builders rather than buyers,” asked Netflix staffers to stay focused on their jobs and responsibilities as the process played itself out in the fine print and with regulators at home and abroad.
With the ambiguity such mergers and deals always exhibit in the early stages, the email echoes in many ways, Peters’s comment on what’s next today to Wall Street analysts.
“We believe that actually having more room to figure out how we allocate, you know, that content across a range of offerings, how we think about bringing that into our plans, of offering today, will actually unlock value that isn’t being unlocked today”, he said in a 45-minute call Friday as the streamer’s stock took a bit of a swipe.
Zaslav summed up the mutual mentality with his new partners/bosses in his own memo. “What we can say now, based on the direction set out today, is that this structure provides a clearer path forward for Warner Bros. within Netflix, and for Discovery Global as a standalone company,” he wrote in his own email Friday AM.
Neither Comcast nor Paramount have said anything publicly of the Netflix-WBD deal, yet.
Read David Zaslav’s full email to WBD employees here:
The Board of Directors of Warner Bros. Discovery (WBD) approved a transaction under which Warner Bros. will be acquired by Netflix, subject to regulatory approvals and closing conditions, including the completion of the separation of Discovery Global from WBD.
As part of the structure, the Global Networks business will form a new standalone company, Discovery Global, with Gunnar Wiedenfels to serve as CEO once the new company separates from WBD, now expected to be completed in Q3 2026.
This decision reflects the realities of an industry undergoing generational change – in how stories are financed, produced, distributed, and discovered – and recognizes the strong, transformed company we are today, the significant value we have created, and the resilience and attractiveness that now position us in a rapidly evolving marketplace. Over the past several months, the Board evaluated a full set of strategic paths. Their conclusion is that this structure – Warner Bros. joining Netflix, and Discovery Global becoming a focused standalone company – provides the strongest long-term foundation for both sets of businesses.
As outlined in the announcement, the proposed combination of Warner Bros. and Netflix reflects complementary strengths, more choice and value for consumers, a stronger entertainment industry, increased opportunity for creative talent, and long-term value creation for shareholders.
I know this announcement creates many questions about what’s next. For some, it brings clarity about direction. For others, it raises questions about what this means for their teams and their work. All of those reactions are understandable. A transaction of this nature naturally creates uncertainty, and not all answers will be available immediately. Some will be clarified in the coming days and weeks; others depend on regulatory processes and on work that cannot begin until separation or closing.
People across WBD have navigated extraordinary change over the last three years, while building a company with real creative, journalistic, and commercial strength. That deserves to be acknowledged plainly.
What we can say now, based on the direction set out today, is that this structure provides a clearer path forward for Warner Bros. within Netflix, and for Discovery Global as a standalone company. For both, the goal is to position their creative work, talent, and brands to navigate a market that is constantly evolving and increasingly global.
What happens now
Later today, we will hold a Global Town Hall to walk through what we know and what is still to be determined. Calendar invites will follow shortly after this email.
Business Unit leaders will hold discussions specific to their areas in the coming days, so you can hear directly from your leader.
Managers will also come together early next week so they have the context and support they need to guide their teams through the early stages of this transition.
What happens next
The path toward a separation of WBD into Warner Bros. and Discovery Global will shift. We will redirect work tied to the earlier, planned two-company operating model and focus instead on the steps required to enable this transaction.
In the coming days, we will establish an Integration Office, which will coordinate all planning with Netflix, consistent with regulatory requirements. Until the transaction closes, WBD and Netflix remain separate companies. It may be tempting to reach out directly to counterparts or former colleagues at Netflix, but it is essential that all interactions are managed through this office to ensure we meet every legal and regulatory obligation.
What this means for you
We also recognize that many people are looking for more clarity about what to focus on, how to prioritize work, and what this means for their teams. Those details will become clearer over the next several weeks, as we move toward our 2026 goal-setting and operating plan alignment processes.
As part of that, you will hear guidance from your Business Unit and functional leaders early in the new year, with expectations and priorities anchored to what we know at that point in the regulatory process.
In the meantime, please continue to focus on the work needed to wrap up 2025, support year-end deliverables, and take the opportunity to rest and recharge over the holidays.
We will continue to communicate regularly, and new information will be shared in One Insider and on the One website. And we will see you later today at the Global Town Hall.
As we move through this next chapter, our aim is simple: handle decisions with care, communicate clearly about what we know, and make sure people have the information and support they need at each step.
I know moments like this carry weight. And they can also mark the beginning of new possibilities. The work you bring to this company – and the way you have shown up for one another – has built something that others clearly see value in. That matters. And while I cannot predict every step ahead, I am confident in the strength of our brands, in the talent of our teams, and in the stories, journalism, and experiences we will continue to bring to audiences around the world.
